RP1391 v2 rev




The World Bank Funded Nanchang Rail
    Transit (NCRT) Corridor from
Hongjiaozhou Depot to Xinjiaan Station


  Resettlement Policy Framework




        NCRT Project Management Office
                March 21, 2013




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A. Project Introduction
1. World Bank Funded Project starts from Zhanqiannandadao Station and ends at
Xinjiaan Station, including 21 stations and one vehicle depot. The NCRT Project
Management Office has prepared Resettlement Action Plan for the resettlement
resulting from land acquisition and house demolition in the project in accordance with
the involuntary resettlement policy of World Bank. This Plan covers the land acquisition
and house demolition involved in all stations, property development, interval routes,
enclosures in construction and traffic relief measures of the project. The total length of
the corridor is 23.78 km.
2. During the project preparation, most of the locations of subcomponents including
stations, depot, property developments and interval routes had been determined and
their involuntary resettlement impacts are known. Therefore, a full Resettlement Action
Plan was prepared. However, there are still a few subcomponents did not fully
determine their locations, such as public transit integration, and there are also some
possibilities that determined scope might need slight changes during project
implementation and cause involuntary resettlement that are not covered by the RAP,
according to Bank’s policy, this Resettlement Policy Framework is prepared.


B. Project Impact
3. The public transit integration associated with the Project aims to realize the seamless
integration of bus transit and rail transit to facilitate residents’ travelling. Land
acquisition and house demolition may be required for bus stops, parking lots and bus
parking field. In addition to the existing spoil grounds and vehicle depots, new spoil
ground may be required for filling of waste soil and slag produced in construction of
Line 2, so land acquisition and house demolition may also be necessary. The location
adjustment of the current planned routes and stations may also necessitate some land
acquisition and house demolition. In current stage, the quantity of land acquisition and
house demolition caused by these factors can’t be confirmed.
C. Principles and Objectives
4. In order to minimize the requisitioned land and demolished houses in this project, any
involuntary resettlement work must follow the fundamental principles proposed in this
Resettlement Policy Framework. Once the quantities of requisitioned land and
demolished houses are determined, a resettlement plan should be prepared according to


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the policies and procedures specified in this policy framework.
5. This policy framework is prepared for the purpose of guaranteeing fair compensation
and necessary support to the population affected by the project construction, so as to
improve or at least maintain their original production level, income level and living
standard.
6. The population affected by the project herein refers to the following people:
     1) Those people whose lands are partially or totally, permanently or temporarily
requisitioned by the project;
     2) Those people whose houses are partially or totally demolished due to project
construction;
     3) Those people whose business activities are partially or totally, permanently or
temporarily affected by the project construction;
     4) Those people whose land attachments are partially or totally affected by the
project construction.
7. In order to achieve the above objective, this resettlement policy framework has
quoted the principles summarized in OP/BP4.12 of the World Bank, specified as
follows:
     1) The resettlement work should be implemented based on the socioeconomic
survey and affected quantity statistics, and in accordance with national and local
resettlement policies and regulations, as well as the Involuntary Resettlement Business
Policy OP/BP4.12 of the World Bank.
     2) The project design should be optimized to minimize the resettlement work. The
populous area should be excluded as much as possible, so as to minimize the
involuntary resettlement. The construction scheme should be optimized to reduce
disturbance to the public.
     3) All compensations for involuntary resettlement should be regarded as a part of
this project. Sufficient fund should be provided to the relocated people, so as to ensure
they can benefit from this project.
     4) It should be guaranteed that all the affected people can receive all the
compensations for the resettlement loss before the implementation of the project. Their
daily life should be properly arranged, and their production should be effectively
restored. Subsidies and assistance should also be given to solve their temporary
difficulties.
     5) It should be guaranteed that the living standard, production capacity and income

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level of all the affected people can recover to their original level or even increase to
some extent.
     6) The compensation for the demolished houses, specialized facilities and land
attachments should be calculated according to the replacement price. The residual value
of demolished materials cannot be deducted, nor can the depreciation of original
property.
     7) Both physical resettlement and monetary resettlement should be offered to the
affected people for them to choose freely.
     8) The relocated people will receive compensation during the transition period and
relocation process.
     9) The relocated non-residential units will receive relocation subsidy and
compensation for production and business suspension.
     10) Special attention should be given to the vulnerable group, helping them select
the resettlement houses and move into the new houses.
     11) Compensation should be given to the owners of the infrastructure for the
relocation and restoration of infrastructure affected by the project.
     12) Reasonable compensation should be given to the requisitioned land and related
losses.
     13) The compensation for the requisitioned land should be paid within three
months starting from the date when the resettlement plan is approved, no later than the
date when the land is used for construction purpose.
     14) During the preparation and implementation stage of resettlement work, the
relocated people should be encouraged to participate in the process, so as to solicit their
suggestions for the resettlement work and publicize the resettlement policy in time.
     15) Great attention should be given to the complaints of affected people. Timely
assistance should be given to them to solve the difficulties and inconvenience during the
resettlement process. The disputes on the compensation rate should be solved through
consultations as far as possible. If consultation fails, it can be submitted for arbitration.
     16) Units involved in the resettlement work should enhance cooperation and
coordination among each other. Resettlement organizations at all levels should be
established, and all the employees should be well trained.
     17) During the implementation process of the resettlement work, any major
changes, including the alteration of compensation rate, alteration of relocated position
and scale, adding new items, etc, should be reported to the World Bank in advance.

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D. Preparation and Review of Resettlement Plan
8. Once the affected population and affected enterprises and institutions involved in land
acquisition and house demolition in this associated project can be confirmed, the
resettlement plan shall be prepared and implemented according to the following
procedures:
     1) Upon the completion of project design, a brief resettlement plan / RAP will be
prepared according to the resettlement policies specified in this report.
     2) The brief resettlement plan/RAP should be submitted to the World Bank for
approval one month prior to its implementation.
     3) The NCRT Project Management Office, external monitoring unit and the World
Bank can conduct field inspection on the implementation progress of resettlement plan.
Once discovering any problems in the resettlement work, the World Bank will urge the
NCRT Project Management Office to take immediate measures to solve the problem.
9. In accordance with this policy framework, the resettlement plan should include the
following contents:
     1) Socioeconomic survey and estimates of affected properties;
     2) Compensation for resettlement and other assistances;
     3) Soliciting the opinions of relocated people towards alternative plans;
     4) Resettlement implementation organizations and complaint procedures;
     5) Monitoring and implementation arrangements;
     6) Time schedule and budgets;
E. Compensation policies
10. The compensation standard is specified to give proper compensation to the affected
population for property loss incurred by the project, and restore their living standard to
the original level or even higher level within the shortest period of time. On the whole,
the resettlement and restoration plan will include the following contents: (1) giving
compensation for property loss such as houses; (2) offering living allowance to alleviate
the temporary impact of project construction on the daily life and business activities of
relocated people; (3) offering occupational training and job opportunities to the
unemployed people, so as to restore their income level; (4) restoring the facilities in the
affected communities and providing community services.
11. Peasants who lose their land due to project construction can receive the following
compensation:


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     1) Directly receiving land compensation fund, relocation allowance and crop
compensation fee.
     2) The crop loss, income loss, damaged infrastructure and reclamation cost caused
by temporary land acquisition should receive appropriate compensations.
12. People who lose their houses and affiliated buildings due to project construction can
receive the following compensation:
     1) Receiving physical resettlement upon the completion of the project;
     2) Receiving monetary compensation according to replacement price;
     3) Receiving relocation subsidies;
     4) Receiving transitional subsidies according to the actual transitional period;
13. People who lose production and business opportunities due to project construction
can receive the following compensation:
     1) Providing other places available for the affected people to conduct production
and business activities;
     2) Giving reasonable compensation for relocation of equipment and relevant loss;
     3) Giving compensation for production suspension during the transitional period;
     4) Giving compensation for fixed assets such as houses that are partially or totally
affected by the project according to the replacement price;
14. The state laws and regulations based on which the resettlement work covered by this
Resettlement Policy Framework is conducted include:
     â—? Regulation of the State Council on Deepening Reform and Strengthening Land
Administration, File No. 28 in 2006;
     â—? Regulation on the Expropriation of Buildings on State-owned Land and
Compensation, coming into force on January 21, 2011;

     â—? Assessment Method for the Expropriation of Buildings on State-owned Land,

coming into force on June 3, 2011.

     â—?Guiding Opinions on Expropriation of Buildings on Collectively-owned Land and

Compensation at Central Urban Area of Nanchang City (for Trial Implementation)
issued by General Office of the People’s Government of Nanchang City, coming into
force on October 10, 2012;

     â—?Notice on Further Strengthening House Appropriation and Compensation Work

in Nanchang City issued by the People’s Government of Nanchang City, coming into


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force on January 4, 2012;

    �Notice of the General Office of People’s Government of Nanchang City on

Properly Handling Historical Problems in Urban House Demolition, coming into force
on April 5, 2006;

    â—?Several Opinions of Nanchang City on Implementing the Regulation of the State

Council on the Expropriation of Buildings on State-owned Land and Compensation,
issued by the People’s Government of Nanchang City coming into force on June 3,
2011;

    �Notice of the General Office of the People’s Government of Nanchang City on

Issues concerning Formulating Monetary Compensation Standard for Urban House
Demolition, coming into force on December 1, 2009;

    �Notice of the General Office of the People’s Government of Nanchang City on

Issues concerning Adjusting the Compensation Standard for Demolished Farmers’
Houses in Urban Planning Area, coming into force on December 1, 2009;

    â—?Notice on Adjusting Replacement Price of the Houses Used for Compensation

and Resettlement for House Demolition in Nanchang City, issued by Nanchang Bureau
of Commodity Prices, coming into force on December 1, 2009;

    �Notice on Implementing the “Six House Demolition Administration Systems of

Nanchang City�, issued by Nanchang Real Estate Management Office, coming into
force on May 19, 2004.

    â—?World Bank operational policy OP4.12 Involuntary Resettlement and appendixes,

coming into force on January 1, 2002;

    â—?World Bank business procedure BP4.12 Involuntary Resettlement and appendixes,

coming into force on January 1, 2002.
15. The compensation policy for land acquisition and house demolition involved in the
Line 2 Phase I Associated Project is consistent with the compensation policy for land
acquisition and house demolition of the Rail Transit Line 2 Phase I project. The
compensation policy includes the following main contents:
    â—? Compensation rate of land acquisition shall be implemented in accordance with



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integrated land price for expropriated land announced by the people’s government of
Jiangxi Province. The price includes land compensation fee and resettlement allowances,
but does not include compensation for young crops:
     Hundred percent of the land compensation fund shall be used for the recovery of
livelihood and long-term development of the villagers involved in land acquisition.
     The compensation fund for the attachments on land and the green crops shall
belong to and be given directly to the owners.
     The allocation of land compensation fund and resettlement allowance is under the
supervision and audit of superior authorities.
     â—? Policies of compensation for house demolition on collective-owned land:
     1) The relocated households can choose from the two compensation methods,
monetary compensation or house property right exchange.
     2)Monetary compensation
     (1) If the building area of the demolished house is within the resettlement area
control criteria, the compensation standard is 2310 Yuan/m2;
     (2) If the building area of the demolished house exceeds the resettlement area
control criteria, the part equal to the control criteria shall be compensated at 2310
Yuan/m2 and the part exceeding the control criteria shall be compensated according to
the current conditions and structure of the house, brick-wood structure: 920 Yuan/m2,
brick-concrete structure: 1100 Yuan/m2, frame structure: 1200 Yuan/m2.
     (3) Monetary compensation is 240 Yuan/m2 for simple structure and 30 Yuan/m2
for shed structure.
     3)House property right exchange
     When house property right exchange method is chosen, the District will build
housings uniformly in the original community for the resettlement of the persons with
houses demolished, with specific measures shown as follows:
     (1) The calculation and control of resettlement area shall meet with such standard:
per capita building area not exceeding 50m2 and building area per household not
exceeding 350m2. The resettlement shall be subject to the principle of the area of
resettlement house being closest to the area of the demolished house.
     (2) When the building area of the demolished house is within the resettlement area
control criteria, the price difference for grade of structure shall be calculated for the part
with equivalent area, 50 Yuan/m2 per grade. When the resettlement house is chosen in
the principle of being closest to the area of the demolished house, if the actual

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resettlement area is larger than the area of the demolished house, the exceeding part
shall be purchased by the relocated household at cost price (2310 Yuan/m2 for frame
structure high-rise building, 2165 Yuan/m2 for frame structure sub-high rise building,
1920 Yuan/m2 for frame structure multistoried building). In principle, the choice of the
resettlement house with area not closest to the area of the demolished house is not
allowed.
     (3) When the building area of the demolished house is larger than the resettlement
area control criteria, the exceeding part shall be compensated according to the current
conditions and structure of the house, brick-wood structure: 920 Yuan/m2,
brick-concrete structure: 1100 Yuan/m2, frame structure: 1200 Yuan /m2.
     (4) The number of persons contained in the relocated household shall be calculated
according to the number of the immediate family members registered in the agricultural
household register. The only child shall be considered as two persons.
     (5) The married member or the member who has reached the age to split from the
household in compliance with the Marriage Law or other laws or regulations shall be
resettled separately according to related policies after splitting of household, and the
total actual resettlement area shall not exceed the total building area of the demolished
houses.
     (6) Other compensation
     Relocation allowance: one-off payment of 500 Yuan per household, and 1000 Yuan
per household for those who need a second moving for temporary resettlement.
     Temporary relocation allowance: 600 Yuan/month per household for 24 months in
transition period. If the transition period exceeds 24 months, the allowance shall be
doubled. But whatever, the temporary transition period can’t be longer than 24 months.
     Advance relocation allowance: If signing the compensation agreement and
finishing relocation within 60 days upon the release of relocation notice, compensation
shall be paid according to the estimated market value plus 20% as relocation rewards; if
signing the compensation agreement and finishing relocation within 61-120 days upon
the release of relocation notice, compensation shall be paid according to the estimated
market value plus 10% as relocation rewards; if signing the compensation agreement
and finishing relocation within 121-180 days upon the release of relocation notice,
compensation shall be paid according to the estimated market value plus 5% as
relocation rewards.
     Decoration compensation: the amount is decided through consultation with the

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relocated household or through appraisal by a qualified real estate appraisal agency.
     Compensation to other house attachments: fencing wall: 50 Yuan/m, cable TV: 120
Yuan per household, fixed-line telephone: 128 Yuan per household, broadband removal:
200 Yuan per line, split type wall mounted air conditioner: 300 Yuan/set, split type floor
standing air conditioner: 500 Yuan/set, electric and gas heater: 100 Yuan/set and solar
heater: 400 Yuan/set.
     Resettlement for the nonresidential houses on collectively-owned land to be
requisitioned shall be handled according to the monetary compensation method.
     â—? Policies of compensation for house demolition on state-owned land:
     Policy for expropriation of residential houses on state-owned land
     1) The owners of the expropriated houses can choose from the two compensation
methods, monetary compensation or house property right exchange.
     2) If the persons whose houses are expropriated choose monetary compensation,
compensation for the value of the expropriated house shall be paid according to
estimated market value. Real estate appraisal agency shall be chosen and determined by
the persons whose house is expropriated through negotiation; if negotiation fails, it shall
be determined by majority decision or random decision.
     3) If the persons whose houses are expropriated choose property exchange method,
resettlement work shall be carried out according to the building area of the expropriated
houses in the principles of “one resettlement house for one demolished house�,
“appraisals for both demolished house and resettlement house�, “mutual payment of
price difference� and “resettlement house with area closest to the area of the demolished
house�. For the part with equivalent area, the principles of “appraisals for both
demolished house and resettlement house� and “mutual payment of price difference�
shall be followed. When the resettlement house is the house type with the area closest to
the area of the demolished house, if the building area of resettlement house is larger
than that of demolished house, the exceeding part shall be paid according to cost price;
if the building area of resettlement house exceeds the area of the house type closest to
the demolished house, the exceeding part shall be paid according to the estimated
market value of the resettlement house.
     4) For the relocated households who sign the compensation agreement and move
out within the specified time limit, the earlier moving out and delivering the house, the
more priority in selecting the resettlement houses.
     5) Decoration compensation shall be confirmed by entrusting real estate appraisal

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agency.
     6) Relocation allowance: if the building area of the expropriated house is below
100 m2, each household shall be paid 500 Yuan for each time of relocation; if over 100
m2, each household shall be paid 500 Yuan for each time of relocation and 3 Yuan per
square meter for the excessive area.
     7) Temporary relocation allowance: for choice of property right exchange, the
allowance shall be paid as 13.5 Yuan/m2/month according to the building area within the
regulated or agreed temporary resettlement period; if the total payment of one
household is less than 600 Yuan, the allowance shall be accounted as 600 Yuan.
Temporary resettlement period shall be 24 months at maximum; for choice of monetary
compensation or property right exchange of ready housing, 6 months’ allowance as 13.5
Yuan/m2 per month per square meter of the building area of expropriated house shall be
paid in one-off method. If the total payment of one household is less than 600 Yuan, the
allowance shall be accounted as 600 Yuan.
     8) Relocation rewards: (1) When the persons whose houses are expropriated
choose monetary compensation, if signing the compensation agreement within the
specified time limit and moving out and delivering the house on time, they shall be
compensated according to the estimated market value plus 20% as relocation rewards;
(2) If signing the compensation agreement and finishing relocation within 60 days upon
the release of relocation notice, compensation shall be paid according to the estimated
market value plus 20% as relocation rewards; if signing the compensation agreement
and finishing relocation within 61-120 days upon the release of relocation notice,
compensation shall be paid according to the estimated market value plus 10% as
relocation rewards; if signing the compensation agreement and finishing relocation
within 121-180 days upon the release of relocation notice, compensation shall be paid
according to the estimated market value plus 5% as relocation rewards.
     9) The monetary compensation received by the relocated household shall be
exempted from individual income tax; if the relocated household chooses to purchase
new house, the part in the purchase price that is equivalent to the monetary
compensation shall be exempted from deed tax
     10) Compensation for house attachments: cable TV: 120 Yuan per household,
fixed-line telephone: 128 Yuan per household, broadband removal: 200 Yuan per line,
split type wall mounted air conditioner: 300 Yuan/set, split type floor standing air
conditioner: 500 Yuan/set, electric and gas heater: 100 Yuan/set, solar heater: 400

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Yuan/set and pipeline gas when monetary compensation method is selected: 3200 Yuan
per household.
     Policy for expropriation of non-residential houses on state-owned land
     1) Monetary compensation shall be carried out according to the estimated market
value.
     2) Decoration compensation shall be confirmed by entrusting real estate appraisal
agency.
     3) Relocation compensation shall be paid by 5 Yuan/m2 or be confirmed by
entrusting real estate appraisal agency.
     4) For production or business suspension caused by house expropriation, minimum
wages for 6 months shall be compensated in full at one time according to the actual
number of employees registered in business license.
     5) Allowances and rewards: when the expropriated is nonresidential houses used
for business, if monetary compensation is chosen, the compensation for production or
business suspension shall be paid for additional 6 months as rewards; when the
expropriated is nonresidential houses not used for business, if monetary compensation is
chosen, the temporary relocation compensation shall be paid for 6 additional months as
rewards. The temporary relocation compensation shall be subject to the standard for the
private houses, that is, 13.5 Yuan/m2/month based on the building area of the
expropriated house, one-off payment of 6 months. If the total amount of each household
is less than 600 Yuan, the temporary relocation compensation shall be 600 Yuan.


F. Organization
16. The resettlement work involved in the Nanchang Rail Transit (NCRT) Line 2 Phase
I Project will be in the charge of the NCRT Project Management Office. The
expropriation and compensation offices in various districts will be responsible for
implementation of land acquisition and house demolition works in the local areas.
G. Implementation procedure
17. The resettlement documents will include a detailed implementation plan. The
compensation fund (monetary or in-kind compensation) and other subsidies will be paid
in time according to the actual progress of resettlement work.
H. Complaint Procedures
18. In order to ensure the affected population can express their complaints about the


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resettlement work, this policy framework has formulated detailed complaint procedures,
with an aim to timely respond to residents’ complaints and avoid complex formalities.
The detailed complaint procedures are as follows:
     Phase I: affected people can express their complaints to the village or sub-district
resettlement office in oral or written form. If the complaints are expressed orally, the
village or neighborhood resettlement office should make a record in the written form
and give a definite answer within two weeks. If the complaints involve major problems
that should be submitted to the resettlement office at a higher level, the response from
the higher-level resettlement office should be obtained within two weeks.
     Phase II: if the affected people are unsatisfied with the response in Phase I, they
can appeal to the expropriation and compensation office of the district within 1 month
after getting the reply of Phase I. The expropriation and compensation office of the
district must make decisions on settling the complaints within 3 weeks.
     Phase III: if the affected persons are still not satisfied with the reply from the
expropriation and compensation office of the district, they can appeal to the NCRT
project management office within 1 month after getting the reply of Phase II. The
project management office must make decisions on settling the complaints within 4
weeks.
     Phase IV: if the affected persons are still not satisfied with the reply of Phase III,
they can appeal to the civil court within 15 days after getting reply.

I．Identification and compensation for unlicensed buildings
19.The people’s governments of all districts shall take the lead to establish a working
team consisting of staff from all related departments to investigate identify and provide
suggestions for the handling of various unlicensed buildings.
     1)The compensation and resettlement work for the unlicensed residential houses
built without license prior to 1985 (included) shall be implemented by reference to the
licensed houses and based on the facts. If the construction time of the residential houses
built without license can’t be determined, the working team shall propose handling
opinions by considering the current conditions of the house.
     2)If the expropriated houses are within the unit’s land use right and the person
whose house to be appropriated possess documents to prove that the building was built
without license prior to 1985 (included), the compensation shall be paid according to
the following standards:

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     (1) Nonresidential housing built without license on unit-owned land
     For the unit-owned nonresidential houses which were built without complete
procedures before 1985 and the property right of which cannot be confirmed by the
municipal Housing Property Right and Registration Management Department,
Nanchang housing registration organ shall issue written materials to certify the area and
structure and the house shall be compensated according to the construction and
installation cost upon approval by the house expropriation department and relevant
departments.
     (2) Residential housing built without license on unit-owned land
     The compensation for the residential buildings built by the unit itself without
license prior to 1985 shall be made according to the construction and installation cost. If
the household living in the buildings has no other residence in Nanchang City, the
compensation shall be made in reference to the licensed houses.
     3)When the construction time of the residential houses built without license can’t
be determined and the owner only has this residence in the urban area of this city, the
compensation and resettlement work shall be based on 36m2 if the building area of the
house is smaller than 36m2; based on the actual area if it is larger than 36m2 but the per
capita living space of household is smaller than 15m2; based on 15m2 per capita living
space of household if it is larger than 36m2 and the per capita living space of household
is larger than 15m2, and the part exceeding the compensation and resettlement area shall
be supplied with monetary compensation according to the replacement price.
     4)When the construction time of the residential houses built without license is
difficult to be determined but the owner has other houses, the working team will have
measurements for the houses and compensation shall be paid according to the
construction and installation cost.
     5) No compensation will be offered to various buildings and attachments which are built in a
rush after the cut off date, i.e. August 20, 2012 is announced.


J. Public Participation and Consultation
20. The NCRT Project Management Office and expropriation and compensation offices
of various districts will implement the public participation and consultation procedure in
the affected area. The specific measures proposed by the resettlement plan, including
resettlement area, compensation policy, compensation standard, measures for restoring
production and living standard, etc, should be widely recognized by the affected

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population before it is approved and implemented.

21. The affected population should participate in the whole process from the preparation

to implementation of the resettlement plan. To achieve this purpose, a public meeting

should be held before preparing the resettlement plan to inform the general public of

this resettlement policy framework. The local government should help the affected

households or non-residential units understand the compensation standards and their

options specified in the resettlement plan.The resettlement action plan will be disclosed

to the public before implementation and every affected household will get a resettlement

information booklet.


K. Monitoring
22. The NCRT Project Management Office should conduct internal monitoring on the
resettlement work. The resettlement monitoring is an integral part of the resettlement
plan. The monitoring process will evaluate the effects of resettlement work by
comparing it with the implementation goals and revise the resettlement plan when it is
necessary. Any major issues that occur during the implementation process of
resettlement plan should be reported to the World Bank in time. An independent
monitoring organization with related experiences shall be hired to carry out external
monitoring. The internal and external monitoring report will be submitted to the World
Bank regularly at the middle and end of every year




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